India’s BSE sensex, a 30 share composite index, hit a new all-time high today, surpassing its previous intraday high of 12671.11 points, which it touched in May, earlier this year. The sensex closed at 12736.42 points today, after gaining around 200 points for the day. It had earlier corrected nearly 30%, after hitting its all-time high on May 11. The current rally in the sensex was mainly driven by technology and oil companies. The frantic selling witnessed in Indian Stock Markets in the month of May and June, was triggered by Foreign Institutional Investors (FIIs), who booked their profits and got out of the markets, then. However, FII money kept flowing in to the Indian stock markets from July 2006, pulling it back from a steep correction.

 

Many market analysts feel that the current Bull Run in the Indian markets is because of the amazing rate at which Indian economy is growing. India’s GDP has been growing for three consecutive years now and this year it is expected it end up with a growth of 8.5%. The outlook for technology sector changed positive, after the software giant Infosys announced better-than-expected results, for the last quarter.

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